15 December 2017
visit www.avoka.com

Monitise slashes revenue outlook

08 July 2014  |  5595 views  |  0 Stock market graph on screen

Shares in Monitise plunged by more than 15% in morning trading after the mobile money firm cut its full year revenue growth forecast for the second time.

In a trading update, the company says that it now expects full year revenue to be between £95 million and £97 million, representing year-on-year growth of between 31% and 33%. This is down on the 40% growth it predicted in March, which itself was a downgrade from the previously stated expectation of 50%.

The revenue shortfall means that Monitise now expects to make a full year Ebitda loss of between £32 million and £36 million, compared to the Bloomberg consensus average of £28 million.

The poor numbers are being blamed on the firm's overhaul of its business model, as it ditches big upfront license fees in favour of a subscription-based system designed to cut costs for banks and boost its own long-term annuities.

The shift to the new model has been faster than expected with some big contracts being renegotiated earlier than planned.

Despite the disappointing results, Monitise insists that it is still on course to finally be Ebitda profitable by 2016. It has also repeated that it is considering a move to a main LSE listing.

Despite its struggles to turn a profit, Monitse has had no trouble raising cash and attracting partners. In March it raised around £109 million in a share-placing joined by MasterCard. Visa is also an investor.

Last month former Visa executive Elizabeth Buse was brought on board to act as co-CEO, looking after day-to-day operations while founder Alastair Lukies focuses on managing outside relationships.

Says Buse: "Having taken the decision to forego certain shorter-term licence revenue in favour of longer-term subscription revenue, our priorities for the year ahead are executing on the strategy we are now aggressively pursuing."

Shares in the company were down 7.75 pence, or 15.7%, to 41.5 pence a share in mid-morning trading.
KeywordsFINDEX

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Monitise acquires loyalty discount business Markco Media

Monitise acquires loyalty discount business Markco Media

26 June 2014  |  6205 views  |  0 comments | 6 tweets | 6 linkedin
Monitise names Visa veteran Elizabeth Buse co-CEO

Monitise names Visa veteran Elizabeth Buse co-CEO

04 June 2014  |  7651 views  |  1 comments | 5 tweets | 6 linkedin
MasterCard joins £109m Monitise share-placing

MasterCard joins £109m Monitise share-placing

25 March 2014  |  7918 views  |  0 comments | 5 tweets | 10 linkedin
Monitise buys out Asia Pacific JV partner

Monitise buys out Asia Pacific JV partner

17 October 2013  |  4633 views  |  0 comments
Monitise revenues soar but losses widen

Monitise revenues soar but losses widen

05 September 2013  |  7427 views  |  0 comments | 1 tweets
Monitise revenues soar as profitability lags

Monitise revenues soar as profitability lags

23 July 2013  |  5492 views  |  1 comments | 4 tweets | 3 linkedin
Monitise and Telefónica form mobile money partnership

Monitise and Telefónica form mobile money partnership

01 July 2013  |  7292 views  |  0 comments | 8 tweets | 5 linkedin
Monitise set for revenue boost from new three-year Visa deal

Monitise set for revenue boost from new three-year Visa deal

06 March 2013  |  7806 views  |  1 comments | 1 tweets | 2 linkedin
Monitise confirms placing, acquisitions and delay to break even

Monitise confirms placing, acquisitions and delay to break even

04 December 2012  |  7292 views  |  0 comments | 2 tweets
Monitise FY losses widen despite revenues doubling

Monitise FY losses widen despite revenues doubling

04 September 2012  |  5602 views  |  0 comments
Visa Europe invests £24.7m in Monitise

Visa Europe invests £24.7m in Monitise

31 October 2011  |  12235 views  |  0 comments
Monitise FY losses widen despite revenue surge

Monitise FY losses widen despite revenue surge

25 August 2010  |  8152 views  |  0 comments
Monitise to raise £32m; extends Visa deal

Monitise to raise £32m; extends Visa deal

13 July 2010  |  11016 views  |  0 comments
Visa signs $13 million deal and takes minority stake in Monitise

Visa signs $13 million deal and takes minority stake in Monitise

30 June 2009  |  11934 views  |  1 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit www.ebaday.comvisit www.thomsonreuters.info

Top topics

Most viewed Most shared
satelliteRipple completes XRP Lockup
10115 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
9518 views comments | 17 tweets | 36 linkedin
Banks and fintech startups join forces on blockchain-based supply chain pilotBanks and fintech startups join forces on...
6918 views comments | 19 tweets | 20 linkedin
hands typing furiouslyReshaping Customer Engagement & Da...
6302 views 0 | 4 tweets | 2 linkedin
Nordea takes Open APIs into live productionNordea takes Open APIs into live productio...
5879 views comments | 5 tweets | 26 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job